Jul 242012
 

NOTICE:  ** Don't forget the webinar with Big Mike's  tomorrow (7/25) at 4:30 PM Eastern.  The webinar will cover a lot on how these reports are made and the theory behind them. If you ever wanted to learn Market Profile, this webinar will cover pretty much everything you need to know (not bad for an hour or so:-).  Sign up here: https://www3.gotomeeting.com/register/546857086  Mike will open the room at about 4PM. See you there! **

The Value Area Report is a daily trading plan based on Auction Market Theory, Market and Volume Profiling techniques for the S&P and Russell Emini Futures (the values in these reports can easily be adapted for SPY [*10] and SPX markets [small premium adjustment]).   Even if you do not use this type of analysis, you should know about it, because large numbers of very well capitalized traders use this approach. As a result, it is likely in your best interest to know and understand it. I have written about these techniques here: http://markettradersjournal.com/volume-profile-analysis/ and elsewhere in this blog.  I also advise reading the notes for both markets as they are related markets. Differences between them can provide clues to what is really going on (though I do not cover cross market analysis in this report). The report is for use on the date posted above based on profile numbers from the trading day before.

For the Emini S&P (ES) Futures:

Overall Outlook:

Today's distribution is somewhat bimodal and elongated and gaped lower than yesterday. This is bearish but is a formation is typically associated with continuation.

Bull Scenarios:

If we open above 1336.50 look to buy at 1336.50 or 1329.50 areas.

If we open above 1346.25 then this is even more bullish and may cause a runner to the upside started by stops being hit.

Bear Scenarios:

If we open below 1324.25 look to sell at 1324.25 or 1329.50 areas.

If we open below 1323.75, then this is even more bearish and may cause a runner to the downside started by stops being hit.

Neutral Start Scenario:

If we open between, 1324.25 and 1336.50, then ranging is more likely.

Always be cautious of the impact of reports that come after the open of the day.

Special Observations:

Notes:  There is a virgin point of control at the 1359, 1312.75 levels.  Watch for potential reversals at these areas.

 

For the Emini Russell (TF) Futures:

Today's distribution is somewhat bimodal and elongated and gaped lower than yesterday. This is bearish but is a formation is typically associated with continuation.

Bull Scenarios:

If we open above 770.40 look to buy at 770.40 or 763.80 areas.

If we open above 779.00, then this is even more bullish and may cause a runner to the upside started by stops being hit.

Bear Scenarios:

If we open below 761.40 look to sell at 761.40 or 763.80  areas.

If we open below 761.20, then this is even more bearish and may cause a runner to the downside started by stops being hit.

Neutral Start Scenario:

If we open between, 761.40 and 770.40, then ranging is more likely.

Always be cautious of the impact of reports that come after the open of the day.

Special Observations:

Notes:  There is a virgin point of control at the 789.40 and 800.40 areas.  Watch for reversals in these regions.

 

Remember to check the Open Report on the Nindicator YouTube Channel just before the open of the day (you should subscribe so you are notified):  http://www.youtube.com/user/Nindicators?feature=mhee

Compare this report and the Open Report with your own analysis.

Note: These reports may vary a bit from Nindicator reports as they may under various circumstances use slightly different calculations.

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